Offshoring – Key Elements for Success

There are many things to take into account if you are considering offshoring any aspect of your business.   I will cover the reasons why you might want to offshore and will cover those reasons you might NOT want to offshore in another article.  For now, let’s assume you have made the decision and consider the key areas you will need to address during your offshoring project.

There any many different methodologies that are being used and have been used to manage an offshoring project.  At the end of the day they are all looking to achieve the same end result, the smooth and successful transition of activities from one location to another and so whilst you can create all the complexity you want, let’s try and remove the smoke and mirrors from this and bring it back to basics.

A checklist for things to consider would look something like this, and whilst it shouldn’t be considered exhaustive, it’s a good place to start and it may get you re-thinking your initial decision to offshore.

Initial Planning

• Identification of resources to enable this project to happen and a framework to control the project
• The scope of activities you intend to migrate and leave behind (if anything!)
• The time line you expect to offshore in (more detailed work needs to go in to finding out if this is possible)
• Key Risks and Issues associated with the migration
• Any personnel/HR/legal issues that should be taken into account?
• Potential service providers and location options
• Preliminary financial analysis and likely business case
• Decide if you still want to continue

Detailed Planning

• Detailed review of scope, can these activities really be performed offshore?
• Stability review – are the processes/activities in any fit shape to be moved, what can be fixed and how?
• What documentation exists today to enable this transfer e.g. training materials, process documentation
• Risks and Issues planning – mitigations against each
• Communications and Change Management planning
• HR planning – recruitment, retention, redundancy
• Facilities and Systems planning
• Business & Financial controls requirements
• Service provider/location review and selection
• Business Case – is this worth it, what’s the cost vs payback?
• Decide if you still want to continue

Implementation

• Put your process fixes in place
• Develop training materials and process documentation
• Training logistics and knowledge transfer process
• Training delivery
• Recruitment
• Facilities and IT implementation
• Back Up plans if the offshore facility/service becomes unavailable
• Detailed cut-over plans from on shore to offshore
• Performance Management – how will you know when they are ready, how will you know when it goes wrong

Go Live

• Realize the benefits – make the on shore costs go away
• Operational Reviews – regular reviews on how it’s going, make sure you are getting what you are paying for

More to follow in this series of articles regarding offshoring ….